KPMG Week in Tax—published weekly to provide an overview of tax developments as reported in TaxNewsFlash—includes summaries of select tax-related news followed by a full list of reports (more information can be found at the links provided).
- United States: Final regulations describe rules for the election to transfer eligible credits in a tax year, including definitions and special rules applicable to partnerships and S corporations and regarding excessive credit transfer or recapture events, as well as rules related to a required IRS pre-filing registration process. Read TaxNewsFlash
- United States: Final regulations concern when foreign persons, including qualified foreign pension funds, are considered to directly or indirectly hold stock in a qualified investment entity (QIE) for purposes of determining whether a QIE is domestically controlled and thus not treated as a United States real property interest (USRPI) under section 897. Read TaxNewsFlash
- EU: The European Parliament adopted a resolution on the transfer pricing directive that suggests that provisions would apply as of 1 January 2025. Read EuroTaxFlash
- Mexico: Recent guidance indicates that not all income derived from the performance of lawful business activity will be considered “business profits” under tax treaties, although income derived from activities provided for in the federal tax code (i.e., those generated by commercial, industrial, agricultural, livestock, fishing, and forestry activities) generally will be considered business profits. Read TaxNewsFlash
Additional reports
United States
- Final regulations: Guidance on transfer of certain tax credits under IRA
- Final regulations: Definition of domestically controlled qualified investment entity under section 897
- IRS Independent Office of Appeals announces formation of alternative dispute resolution program management office
- Tennessee: Franchise tax refund agreement reached
- KPMG reports: Georgia (income tax rate changes); Illinois (retailer’s occupation tax); New Jersey (sourcing for corporation business tax)
Transfer Pricing
- Austria: Draft law implementing public country-by-country reporting
- Estonia: Legislation implementing Pillar Two global minimum tax rules approved by Parliament
- EU: European Parliament adopts resolution on transfer pricing directive
- Germany: Draft bill for Annual Tax Act 2024 includes Pillar Two changes, other tax developments
- Greece: Legislation implementing Pillar Two global minimum tax rules enacted
- Iceland: Intention announced to implement Pillar Two global minimum tax rules
- Korea: Interest deductions could be challenged on arm’s length grounds, but not wholly denied as tax avoidance (Tax Tribunal decision)
- Poland: Public country-by-country reporting implemented
- UK: Related-party interest arm’s length but still disallowed based on unallowable purpose (Court of Appeal decision)
Americas
- Bolivia: “Eleventh group of taxpayers” to implement online billing modality
- Bolivia: Extended deadline for filing corporate income tax forms, statements
- Mexico: Guidance on determination of business profits under tax treaties
Asia Pacific
- Australia: Guide to manage requirements of “Division 7A” loan
- Australia: Legislation requiring disclosure of subsidiaries' tax residence in financial reports enacted
- Australia: Payroll tax payable by mortgage aggregator on commissions paid to brokers (Supreme Court of New South Wales decision)
- Australia: Update on “Next 5,000” private groups tax performance program
- India: Payment for sharing third-party shrink-wrapped software not a royalty (tribunal decision)
- Korea: Interest deductions could be challenged on arm’s length grounds, but not wholly denied as tax avoidance (Tax Tribunal decision)
- Korea: New guidance on improving data collection during customs audits
Europe
- Austria: Guidance on VAT exemption for board renumeration; other recent direct and indirect tax developments
- Cyprus: Increased capital allowances for “green” investments
- Cyprus: Tax card for 2024
- Cyprus: Temporary zero VAT on specific goods extended to 30 June 2024
- Czech Republic: Draft bill implementing directive on tax transparency rules for service providers facilitating cryptoasset transactions (DAC8)
- EU: European Parliament adopts resolution on transfer pricing directive
- France: New rules to avoid double-taxation from sale of CFC
- Germany: Draft bill for Annual Tax Act 2024 includes Pillar Two changes, other tax developments
- Germany: VAT treatment of vouchers (CJEU judgment)
- Poland: New deadlines for e-invoicing mandate announced
- Poland: Timing of tax exemption; inheritance and donation tax exemption; insurance proceeds not exempt income (Supreme Administrative Court decisions)
- Portugal: Proposed reduction of corporate income tax rate to 15%
- Serbia: Tax card for 2024
- UK: Consultations on VAT treatment of private hire vehicles, charitable donations
- UK: Related-party interest arm’s length but still disallowed based on unallowable purpose (Court of Appeal decision)
- UK: Taxpayer’s arguments that no withholding tax due on interest paid to foreign lenders rejected (Court of Appeal decision)
Read TaxNewsFlash-Europe
FATCA / IGA / CRS
- Channel Islands: Deadline for submitting FATCA and CRS reports is 1 July 2024 (Guernsey)
Trade & Customs
- Bolivia: Guidance on requests for refunds of export taxes
- Hungary: New reporting obligation for import of certain agricultural products
- Korea: New guidance on improving data collection during customs audits
- Mexico: New decree modifies general import and export tax law
- United States: License exception for medical devices destined for Russia, Belarus, and certain regions of Ukraine
- United States: USTR releases 2024 “special 301 report” on protecting intellectual property rights
The items described above are also reported as editions of TaxNewsFlash:
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